Calculations for Order Quantities

The system bases calculations for the Suggested Order Quantity (SOQ) on the Order Policy Code field. If the Order Policy Code field contains a value of:

• Blank, 0, or 3, the system uses this calculation:

  SOQ = Economic Order Quantity + Reorder Point – Quantity Available

• 1, the system uses this calculation:

  SOQ = Reorder Point – Quantity Available

• 2, the system uses the amount in the Value Order Policy field on the Plant/Manufacturing Data tab of the Additional System Info form in the Item Branch Information program.

If the SOQ is:

• Greater than the Maximum Reorder Quantity field on the Quantities form in the Item Branch/Plant Information program, the system uses the maximum reorder quantity amount.

• Less than the Minimum Reorder Quantity field on the Quantities form in the Item Branch/Plant Information program, the system uses the minimum reorder quantity amount.

Note:

You can run several other batch programs to have the system calculate a suggested reorder point. Consider running the Sales Order Purchase Order Generator program (R437001) and the Stocked Item Reorder Point Batch Purchase Order Generator program (R437002), which conserve system resources.

The Suggested Reorder Stock Items program (P4371) displays the calculated suggestions of the system and enables you to apply blanket orders when necessary.